WT/DS507/4, G/L/1146/Add.1  
G/SCM/D110/1/Add.1, G/AG/GEN/131/Add.1  
 
8 March 2024  
(24-2141) Page: 1/2 
  Original: English  
 
THAILAND – SUBSIDIES ON SUGAR  
NOTIFICATION OF A MUTUALLY AGREED SOLUTION  
The following communication, received on 6 March 2024 , from the delegation of Brazil  and the 
delegation of Thailand  to the Chairperson of the Dispute Settlement Body, is circulated pursuant to 
Article  3.6 of the DSU.  
 
_______________  
 
 
The Governments of Thailand and Brazil wish to notify the Dispute Settlement Body ("DSB") that, in 
accordance with Article 3.6 of the U nderstanding on Rules and Procedures Governing the Settlement 
of Disputes ("DSU"), we have reached a mutually agreed solution to the matter raised by Brazil in 
Thailand – Subsidies Concerning Sugar  (DS507).  
 
The content of the mutually agreed solution is a ttached to this communication. We request the 
Chairperson of the DSB to circulate this notification to the relevant Councils and Committees, as well 
as to the DSB.  
 
_______________  
 
  WT/DS507/4 • G/L/1146/Add.1 • G/SCM/D110/1/Add.1 • G/AG/GEN/131/Add.1  
 
- 2 - 
 
  MUTUALLY AGREED SOLUTION BETWEEN THE GOVERNMENTS OF THAILAND AND BRAZIL  
IN THAILAND – SUBSIDIES CONCERNING SUGAR (DS507)  
 
The Government of the Federative Republic of Brazil ("Brazil") and the Government of the Kingdom 
of Thailand ("Thailand") (individually, "Party" and, collectively, "the Parties");  
 
Having regard to B razil's Request for Consultations, dated 4 April 2016, under Article 4 of the 
Understanding on Rules and Procedures Governing the Settlement of Disputes ("DSU") of the 
World  Trade Organization ("WTO");  
 
Considering the constructive consultations held by the Parties on various occasions in the 
period  2016 - 2023, as well as Thailand's efforts to address Brazil's concerns pursuant to the 
Memorandum of Understanding concluded by the Parties on 11 August 2021;  
 
Mindful of the Parties' ri ghts and obligations under the Marrakesh Agreement; and  
 
Desiring an amicable and permanent resolution of the current dispute;  
 
1. The Parties have concluded the present mutually agreed solution ("MAS") to the matter 
raised by Brazil in Thailand – Subsidies C oncerning Sugar  (DS507) by which they settle this 
dispute.  
 
2. In 2016, Thailand started a reform process of its domestic sugar regime motivated in part 
by Brazil's concerns raised in the course of the WTO consultations in DS507. As a result of 
this reform pr ocess, Thailand adopted certain regulatory modifications and amended the 
Sugarcane and Granulated Sugar Act B.E. 2527, as stipulated in the Sugarcane and 
Granulated Act (No 2) B.E. 2565 (2022) which was published in the Royal Gazette on 
23 December 2022 an d which entered into force on  4 December 2022.  
 
3. Thailand's reform process of its domestic sugar regime produced the following results:  
 
(a) The termination of the quota system since 15 January 2018;  
 
(b) The termination of the fixed domestic sugar price pursuant to the amendment of 
Section 17(18) of the Sugarcane and Granulated Sugar Act B.E. 2527, as provided 
in the Sugarcane and Granulated Sugar Act (No. 2) B.E. 2565 which entered into 
force on 24 December 2022;  
 
(c) The termination of the assistance payments of THB  160/tonne to sugarcane farmers 
since 11 October 2016; and  
 
(d) The modification of the compensation to sugar mills in the years when the final price 
of sugarcane is lower than the preliminary sugarcane price pursuant to the 
amendment of Section 56 of the Sugarcane and Granulated Sugar Act B.E. 2527, as 
provided in the Sugarcane and Granulated Sugar Act (No. 2) B.E. 2565 which 
entered into force on 24 December 2022.  
 
The Parties shall notify this mutually agreed solution to the Dispute Settlement Body and r elevant 
Councils and Committees of the WTO in accordance with Article 3.6 of the DSU.  
 
Done at Abu Dhabi on 24 February 2024, in two originals, each in the Portuguese, Thai, and English 
languages, all texts being equally authentic. In case of any divergenc e of interpretation, the English 
text will prevail.  
 
__________